Sturdy, sturdier, US employment

Friday’s employment figures show that the US labor market continues moving on with no regard to recession expectations. In May, the  nonfarm payroll employment surprised positively with an increase of 339 000 jobs, but unemployment rose from a record low level to 3.7%. There was a decrease in both wages and weekly hours worked, indicating that tension in the labor market continues to decrease.

Artikel05.06.2023 af Marianne Palmu
Valuation methods: DCF model

The DCF model, also known as the cash flow model, may seem extremely complicated, danger-prone and a valuation tool only used by professionals if you are not familiar with it and listen to hearsay.

Artikel02.06.2023 af Joonas Korkiakoski
Debt ceiling crisis is receding

In this post, we talk about the debt ceiling crisis receding and the resilience of the US economy.

Artikel30.05.2023 af Verneri Pulkkinen
Global bull market

Stock markets around the world have seen a broad-based bull market over the past six months. On top of that, a strong start to the year has augured well for a strong end to the year.

Artikel24.05.2023 af Verneri Pulkkinen
If removed economic policy support take the edge off inflation

The euro area and many other economies allowed national deficits to increase during the COVID pandemic without any qualms. From the point of view of inflation, the tab is still open this year, but after that economic policy support will gradually fade away – unless a new crisis emerges.

Artikel23.05.2023 af Marianne Palmu
Valuation methods: Valuation multiples

Valuation multiples are the most used or at least most commonly communicated valuation methods.

Artikel22.05.2023 af Juha Kinnunen
Teens active in the US labor market

Young people are the future of the American labor market. However, it should also be born in mind that young people’s participation is cyclical: work is attractive in a strong economic cycle but when the economy makes a downturn studying is often the option.

Artikel17.05.2023 af Marianne Palmu
Flat market scenario

The economic data has been a bit soft, with a few companies dropping a profit warning surprisingly quickly after the earnings season, such as UPM and Aspo. At the same time, investors are worried about the fast-approaching debt ceiling crisis, which at its worst could bring down the market and the economy.

Artikel17.05.2023 af Verneri Pulkkinen
Capital allocation

Success in capital allocation is critical to the long-term success of companies.

Artikel15.05.2023 af Juha Kinnunen
Green transition, part 3: The economic impact of taxonomy and emissions targets probably be seen in the longer term

The so-called EU taxonomy does not yet have a clear impact on the availability or pricing of financing based on the earnings reports of large companies listed on Nasdaq Helsinki. We believe that reaching the emissions targets may require investments for certain industries already in the medium term. On the other hand, we do not expect most companies to demonstrate significant costs or investment needs related to this in the short term.

Artikel12.05.2023 af Karoliina Loikkanen
Could Tokmanni become the Willy’s of Finland?

Grocery would make a lot of sense for Tokmanni. The company is already Finland’s fourth biggest grocery retailer with a minuscule 3,3% market share. Despite the small market, groceries represent 56% of Tokmanni’s revenue.

Artikel09.05.2023 af Arhi Kivilahti
Importance of the owner

The role of the owner is important when considering companies as investment targets, as it is ultimately the owners who determine the direction in which the company is to be taken. 

Artikel08.05.2023 af Olli Koponen
What did we learn about retail last week?

Companies from Amazon to Unilever and Tractor Supply to Kesko have given light on how the industry is performing amid these challenging times. Here are three takeaways.

Artikel04.05.2023 af Arhi Kivilahti
The right steps in a bull market

In this post, we talk about the development of critical results for equities and how so far the steps to a continued bull market seem to be hitting the mark. The past is no guarantee of the future, but so far things are looking good for the bulls.

Artikel03.05.2023 af Verneri Pulkkinen
Riksbank continued its heavy rate hikes, ECB likely to follow next week

On Wednesday, the Central Bank of Sweden Riksbank raised its interest rate by 50 basis points to 3.5%. The rate hike was a continuation of a record series witnessed in the Nordic countries and more widely in Europe.

Artikel26.04.2023 af Marianne Palmu
Still waiting for that recession

In this post, let's talk briefly about the earnings season that is better than feared. Then we take a look at the world's most anticipated recession, which keeps us on our toes. In fact, the recovery of the construction sector in the US may at some point start to accelerate economic growth. Thirdly, we’ll talk of the impact of oil prices on cooling inflation.  Finally, let’s discuss a slightly broader topic of how rising geopolitical risks have been shown to fuel inflation, weaken economic activity and reduce the volume of world trade.

Artikel25.04.2023 af Verneri Pulkkinen
Three options for a quality grocer like ICA or Kesko

After fabulous growth and profitability during the pandemic, many quality-oriented traditional have faced severe problems in matching the market growth, let alone inflation.

Artikel24.04.2023 af Arhi Kivilahti
The importance of management

The company management plays an important role in the success of the business, and you should pay attention to their expertise and the quality of management work when assessing investment targets.

Artikel24.04.2023 af Antti Luiro
A bull market is always born on pessimism

“Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” So says the legendary investor, John Templeton. In this post, let's talk about sentiment.

Artikel21.04.2023 af Verneri Pulkkinen
Wage growth as a driver for the economy

In this post, we briefly talk about the development of liquidity, which has been favorable for equities. We also make a quick visit to China. Then we look at the market's preparation for the US becoming insolvent if the debt ceiling debate continues. Finally, I'll highlight a few takeaways from the poor earnings season and how wage growth could emerge as a growth driver in the US.

Artikel18.04.2023 af Verneri Pulkkinen